A sign of the times : When the gomen raid the profitable blue chips, winter is probably coming. It started with Jibby raising hefty spectrum fees which kill off the telecommunication sector to bury his hole. Then PH now raids another profitable blue chip to make things right.

Be investment light. Just play play for fun. Keep your cash.

Read this posting by a forumer who holds shares in Galaxy n Sands Macao in GenM blog

quote
Posted by Kpin Yeoh > Nov 3, 2018 11:42 PM | Report Abuse

Previous gaming tax is 25% gross + 25% cooperate tax,
Current gaming tax 25% gross +25% cooperate tax 43.75%
2019 gaming 35% gross + 25% cooperate tax is 51.25%
Total addition tax impose is 7.5%

Base on the recent year financial result profit from Gaming vs Other ( Hotel, F&B, Amusement and Etc) is 40/60 ( not consider income from UK and US), so the total addition tax impose could be 4% or less.
Regarding the re-newer license yearly addition on 30 million or 7.5million/ Quarter.
Currently GenM made 465million gross profit/ quarter compare with 7.5mil is not significant.

Since indoor theme park and Fox Century theme park is opening soon, the profit from Amusement will be more compare to gaming and not forget GENM still have tax incentive of GITP, which can easily offset the addition tax in 2019.

I happened to queue on Friday at 4.54 to buy, someone sold out big block to me, I am unsure whether is good or bad news but for me I will keep this counter for a while. Lets see

I own some other gaming stock for Galaxy Entertainment and Sand, I feel that GENM still a bargain compare to both Galaxy and Sand. Macau have total 6 gaming licenses (fierce competition) while Malaysia have only 1 gaming licenses with no competition. I might consider to realize the profit from both Galaxy and Sand to switch to GenM if have bargain price on Monday.
unquote

Reporters always opt for drama. The increase in gross collection tax is 7.5%. Taking into account that casino contribution to Genm's profit is 40%, the additional tax is actually abt 4%. One Nomura analyst has written that the market has already price in almost a 10% increase.

A lesson for long term players. Keynes said: "In the long term, we are all dead".

I have already stopped applying IPOs. Those golden days are already dead n gone with the wind.

(normal day are very low win rate alr)

Try playing after midnight. I went to Venetian Macao casino after midnight n play their slot machine n money kept pouring out.

With so many KLCI component stocks hit, how low will KLCI go ?? Telcos hit, Leisure companies hit, Construction Cos hit ...

Better stay out of the market.

Do not trust investment banks. when they participate in the IPO, the say it is fairly priced. Then they will give comparisons like "this IPO is priced at PE of 13 while the average PE for the industry is 14 ..."

What is the difference between PE 13 n PE 14 ? There is no margin of safety at all.

But share price from RM5 kena rumour said naik tax, ady drop to this level. But after all the impact still okok, will drop some more meh?

Exactly. Most probably sold after 4.45 when they got the news. Sell first, ask later.

Casino business in M'sia is under GenM but GenM also owns casinos in UK, US, Bahamas etc..

Ph govt taking 1bil out of pocket for fiberisatoon.

Probably to help TM.

BN dug a huge deep hole. When they are desperate, they will also keep raising taxes. At least, PH wants to stop this rot.

after PH took over, I don't know how to invest anymore. buy blue chips all down like shitting. I aldy said earlier if BN won, the market really favour us. now.. all regret right?

Gomen all alike. I am sure u remember, BN was the first to hit the telecommunications sector by raising hefty spectrum fees. Maxis dropped from its high of 7++ to 5.65 in a knee jerk reaction.BN gomen not angels.

The only negative is Genting is still in its correction mode.

Most of these expectations already priced in. Most sellers who got the news probably sold after 5.45 by selling lower than the last buyer's offer. Sell first, ask later strategy.

should be 4.45 n not 5.45 as stated.

Genting is the holding company of all its gaming n leisure companies world wide. It is probably not much affected. But share prices are based on sentiments in the short term.

Most of these expectations already priced in. Most sellers who got the news probably sold after 5.45 by selling lower than the last buyer's offer. Sell first, ask later strategy.

license fee is paid by Genting. Gaming tax on patrons ?

FLASH: Annual gaming licence fee for casinos to be raised from RM120m to RM150m; gaming tax on casinos to be raised to 35% of GGR

translation :Casino license fees increased to RM150 million
The annual fee for updating the casino license will be raised from RM120 million to RM150 million; the casino tax will be increased to 35% of total revenue.

Fallen back at close

TM's 1st attempt to move past the gap resistance at abt 2.56 has probably failed. It means it would probably move lower before another attempt

What does the technical chart tells us ?

Jibby is probably crying over his millions now.

In the first place, does this chap has the right to sell ??

China should restrict the amount of rare earth that can be exported to Trump. This way he can't produce more n more missile parts.

even stocks with dividend support can crash. Just look at 1997/1998 crisis.

the market does not give reasons because it has no reason to give. It has life of its own. If u happen to spot any anomaly, just sell. If u venture to find out the reason, u may be trapped.

Dr M was a colourful character n I hope he still is. I remember I held a huge amount of Bank Utama shares from IPO. Our market was bad then n suddenly carnations rained from the sky. Dr M just said "buy now" to local funds n as expected Bank utama IPO shares were above water on the opening day.

U remember 1993 big bull run ? Foreigners were then influenced by those US snake oil sellers with themes such as "Pacific Century". When the Bath was attacked in March 1997, some foreigners came to their senses n they started questioning if M'sian stocks are overvalued. The Japanese were the first to sell when they realised that the USD/MYR exchange rates were indeed overvalued. So much so that, if they shift their plants back to Japan, they could make a profit fr those product lines.

When the selling started, others were jolted into reality n joined the huge exodus. It is this exodus that contributed to the Asian crisis.

If foreigners held a small percentage of M'sian shares back then, the impact would have been much smaller.

Back in 1998, foreigners held lots of M'sian stocks. Now, foreigners hold a negligible amt of M'sian stocks.

Is it that easy to open an account overseas in view of Money Laundering laws now in place. Maybe British Virgin islands ????

Nobel laureate,Joseph E. Stiglitz said:

"First, macroeconomics always prevails: if the United States’ domestic investment continues to exceed its savings, it will have to import capital and have a large trade deficit. Worse, because of the tax cuts enacted at the end of last year, the US fiscal deficit is reaching new records – recently projected to exceed $1 trillion by 2020 – which means that the trade deficit almost surely will increase, whatever the outcome of the trade war. The only way that won’t happen is if Trump leads the US into a recession, with incomes declining so much that investment and imports plummet."

If the US is sucked into a recession, will Asean win ?

In trade wars , everyone loses. As one economist in US admitted, China is not so dependent of US as the US would like her to be.

For TM, it is government agenda vs profits.

Stockmarket is a zero-sum game. Your loss is somebody's else gain n vice versa. If u do not understand this, stay out of the game.

This is how nations develop. It is the reality. Bill Gates encourages African nations to emulate China.

Decades ago, there was no internet. No hacking. They use traditional methods. Of course it now so obvious.

quote
When Germany was emerging as an industrial power, for instance, the
UK accused it of copying its products and demanded the use of “Made
in Germany” labels to distinguish its products from the British originals.
Japan faced similar accusations from Western countries, as did China from both the West and Japan. Today, many Chinese businesses are demanding that the Beijing government implement stronger intellectual property rules because they worry that any product they develop will be quickly copied by domestic competitors, rendering their research and development efforts worthless.
unquote

This passage is taken from "The Other Half of Macroeconomics and the Fate of Globalization" (first edition 2018) Richard C.Koo. The author holds Japanese citizenship.

"Japan don't steal IP"

Are u sure ? Even US steal IP when she was developing.

So now you tell me, what has China stolen from Donald Duck?
So now you tell me JV is done without consent?
So now you tell me JV profit is wrongful gain by one party lah?

You are right.
It is a deliberate US containment policy on China. When the US was caught spying on Germany, Obama said it is 'legitimate' spying. The US went to Africa n warn agst Chinese colonialism.Just look at Diego Garcia, the last vestige of British & US colonialism.

Africans just laugh n say "we do not see it that way." African know it is the white man that have exploited them for centuries.

An independent third party audit revealed that a tiny microchip (like a grain of rice) which wasn't part of the original design.

It was even reported that this is "edgecutting technology" upon "edgecutting technology" If this is so, why ZTE was undermined? ... China is already a technology superpower...Why wait until 2025?

It is a US policy to contain China. Others are excuses. The previous policy of containment lead to the Korean war n ended with the US defeat in Vietnam. The US fear of losing its position as the most powerful nation. US even threatened Russia but Putin said Russia is ready. While others are testing hypersonic missiles, Russia's hypersonic missile system is already in operation.

From my point of view, after one more generation, China can just dismantle the CCP n continue as a prosperous nation. We hope things can change suddenly but it will be gradual.

Now, Trump is a 'paper' tuan. SA ask Trump if he wants oil price to go up to USD400. Trump chickened out.

CCP's goal is not exporting communism. It is communist in name but is capitalist. They are smart. They merely use 'communism' to exert control.

When the USSR collapsed, the West hoped that China will follow. Without this control over her population, China would have collapsed like USSR.
The West have no moral high grounds to preach human rights either.
Just look at Diego Garcia, the last vestige of British & US colonialism.

Between 1968 and 1973, the local population was forcibly removed by the United Kingdom to establish an American base through intimidation of locals and denying the return of any who left the island.Many were deported to Mauritius and the Seychelles, following which the United States built a large naval and military base, which has been in continuous operation since then. Mauritius has launched an international campaign to have US & UK return Diego Garcia to her.
(U can see all events leading to UN vote against UK in U Tube)

Generations of local ppl lived there. Suddenly, yr colonial master says u have pack up n leave with only yr shirts u wear with no compensation.

"Suspect using a lots of port sharing to cut cost."

I am considering to cut TM line and opt for Maxis home fibre instead. I am afraid after upgrading fr Streamyx to Unifi, the speed gets slower n slower.

High likely foreign selling is not over yet, looking at its volume.

even at this price, I do not believe EPF is making a loss if u take into account the number of times it issue bonus share from day 1 of its IPO.

US dread to think of the day when they could no longer fly their reconnaissance planes to spy on other countries. To them, this is their right. If other countries becomes strong, they must be contained.

The containment of PRC lead to the Korean n Vietnam wars. The containment policy formally ended with US defeat in Vietnam. Now they want to start it again.

I remember years ago I upgraded my streamyx 4Mbps to 8Mbps speed. Imagine what happened. After upgrading, my streamyx became slower. I complained to TM n I brought the router they supplied for checking n they said nothing wrong!

If I upgrade to unifi n the speed become slower, what am I going to do?

all countries do spying. US was caught spying on Germany. Obama called it "legitimate spying". Where on earth is this "legitimate spying" Spying is spying. Snowden revealed US spy on its own citizens also.

We can have other taxes but not CGT on share trading. I am sure there are other means.